Tiny and This Week's LMM Activity
Week of August 30th Lower Middle Market Highlights
Happy Labor Day weekend and thanks to the 51 new subscribers who joined this last week. We’re the only news source tracking lower middle market M&A. Our goal is to keep you up to date on the latest information/transactions in the market and highlight market participants that are doing interesting things in the space.
This Week’s Feature
This week we’re featuring Tiny. Tiny, formed in 2015 by Andrew Wilkinson and Chris Sparling, is a long-term holding company for “wonderful internet businesses”. The company is intent on owning profitable businesses that have stood the test of time and takes the Berkshire Hathaway approach to lower middle market technology companies. This means Tiny likes to move quickly and often times non-traditionally. Like Buffett, Andrew and co., are known to value durable products and brands, close deals quickly (< 30 days), and make the buying process as simple as possible.
What interests us about Tiny, is that they sit at the intersection of venture capital and private equity but employ a kinder ethos. This ethos is the result of an experienced team of founders who have been on the opposite side of the negotiating table. The team sold numerous businesses to private equity and realized the process was flawed. Thus, Tiny sought out to make the acquisition process as seamless as possible with no complex deal terms. Tiny doesn’t flip its portfolio companies. Instead, they think about long-term cash flow and can be a great option for founders who care about the legacy of their business.
Tiny has a controlling stake in over 28 companies including Dribbble (the largest social network for designers) and Girlboss (Sophia Amoruso’s former media brand that was dubbed “LinkedIn for Women”). The team looks at 50 to 100 companies a month and on average buys three to five a year. Tiny typically purchases businesses profiting between $500k and $30m a year - the sweet spot is successful bootstrapped companies or VC-backed companies with a high-quality products that no longer exhibit hockey stick-like growth. Although they are industry agnostic within the internet space, Tiny is keen on marketplace, newsletter, and Shopify businesses, at the moment.
You can learn more about Tiny and reach out to Andrew and co. by clicking here. We also recommend these additional resources that provide deeper dives into the background and thesis behind the firm:
The Berkshire Hathaway of The Internet Link
Andrew Wilkinson on Tiny Capital, the Berkshire Hathaway of the Internet Link
This Week’s LMM Activity
WM Partners invests in beauty and lifestyle brand, Raw Sugar Link
Huron Capital and its platform, Pueblo Mechanical & Controls, acquires Central Air & Heating Services Link
Apax Partners acquires landscaping co., SavATree, from CI Capital Link
Accelmed Partners and portfolio co., Keystone Dental, acquires Osteon Medical and raises $25m Link
Centre Partners invests in leading AT&T retailer, Midwest Mobility Solutions Link
DFW Capital sells regulatory and compliance services co., RQM+, to Linden Capital Partners Link
Kyowa Industrial acquires Eidemiller Precision Machining Link
Spire Capital and its portfolio co., PROtect, acquire Riccardelli Consulting Services - a provider of non-destructive testing focuses on pipeline integrity for the midstream oil and gas industry Link
Gen Cap acquires Lab Products and Harford Systems from Avidity Science Link
Brightstar Capital Partners acquires XLerate, a leading provider of nationwide used vehicle auctions and remarketing facilitation services Link
CAI Capital Partners invests in aviation communication services co., ATS Services Link
MiddleGround Capital raises over $1 Billion, less than two years after raising its $460m debut fund Link
Private equity has definitively entered the world of professional sports. Here’s what comes next. Link
Also, private equity’s sports investing playbook:
A brief history of private equity through five deals Link